Question: Current Attempt in Progress Pharoah Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $199,100 and has an estimated

 Current Attempt in Progress Pharoah Bottling Corporation is considering the purchase

Current Attempt in Progress Pharoah Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $199,100 and has an estimated useful life of 8 years with zero salvage value. Management estimates that the new bottling machine will provide net annual cash flows of \$35,200. Management also believes that the new bottling machine will save the company money because it is expected to be more reliable than other machines, and thus will reduce downtime. Assume a discount rate of 10%. Click here to viey the factor table Calculate the net present value. (If the net present value is negative, use either a negative sign preceding the number eg - 45 or parentheses es (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round present value answer to 0 decimal ploces, es. 125.) Net present value How much would the reduction in downtime have to be worth in order for the project to be acceptable? (Round answer to 0 decimal places, es. 125.)

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